KUALA LUMPUR (Feb 23): Sports Toto Bhd (KL:SPTOTO) reported a 9.2% drop in its second-quarter net profit, mainly due to widening losses at its British luxury car dealership unit.

Quarterly net profit for the second quarter ended Dec 31, 2025 (2QFY2026) fell to RM45.12 million from RM49.67 million a year earlier, while revenue eased 0.3% to RM1.476 billion from RM1.481 billion.

Despite the earnings dip, the group declared a higher second interim dividend of three sen per share, up from two sen per share a year ago, amounting to RM39.65 million. The dividend, with an entitlement date of March 27, is payable on April 17.

The group's core lottery business showed resilience, delivering stronger results during the quarter. Pre-tax profit rose 1.6% on the back of higher sales and lower prize payouts, as revenue grew 3.3% — supported by increased average sales per draw and a higher number of draws compared to the same quarter last year.

In contrast, its UK-based luxury car dealer, HR Owen plc, posted a pre-tax loss of RM15.6 million, doubling the RM7.8 million loss recorded a year earlier. Segment revenue fell 3.4% due to softer new car sales and unfavourable foreign exchange fluctuations. The wider loss reflected both the revenue decline and higher operating expenses amid challenging UK economic conditions and new labour regulations.

For the first half of the financial year, Sports Toto's net profit dropped 26.1% to RM67.22 million from RM91.01 million, even as revenue rose 1.6% to RM2.97 billion from RM2.92 billion.

Sports Toto remains "cautiously optimistic" about its prospects. The group expects its number forecast operation (NFO) business to sustain growth, supported by the popularity of its Jackpot and Digit games. Management expressed confidence in maintaining its leadership in the legalised NFO sector despite broader economic headwinds.

"Despite the geopolitical and global economic uncertainties, the group's businesses are anticipated to continue delivering stable and positive outlook for the remaining quarters of the financial year ending June 30, 2026 (FY2026)," it said.

Shares in Sports Toto closed up two sen or 1.5% higher at RM1.38 on Monday, valuing the group at RM1.86 billion. The stock has retreated 11.5% over the past year.